Demand for Imported Cheeses Remains Strong Despite Challenges of Past Year

By Rena Archwamety

MADISON, Wis. — Cheese imports, which were valued at nearly $1.35 billion last year, are expected to remain steady again this year as consumers continue to seek gourmet food items, bold flavors and traditional favorites. And despite recent challenges, from tariffs on European cheeses to COVID-19 restrictions, demand for imported cheeses is as strong as ever, according to U.S. importers.

“For the 2020 holiday season, which is a huge season for all of us who import cheeses, we expect business to definitely maintain status quo if not increase,” says Daniel Schnyder, president of the Cheese Importers Association of America (CIAA) and director of imports and licensing, Emmi Roth. “We expect people would eat more at home, indulge in imported cheese at home, because of not being able or willing to go out. If they are signed up to some recipe website that calls for a Gruyere, or a Gouda from Holland, there will be more of that.”

Ian Schuman, import business unit manager at Schuman Cheese, notes that imported cheese can help to elevate favorite dishes made at home.

“The amazing thing about cheese is that you can swap out an exciting import for a trusty favorite anytime,” Schuman says. “For example, a traditional grilled cheese with Margot Swiss Gruyere or adding shredded Zanetti Parmigiano Reggiano to pasta will take ordinary meals to the next level. Especially in these times, little luxuries can make a big difference.”

Imported cheeses in demand right now include staples like Cheddar and Gouda, as well as more recently-trending cheeses like Halloumi.

“We have seen great interest in Halloumi this year. It is a great center-of-the-plate cheese with its ease of use and multiple pairing options. It is especially popular in the warmer months as a grilling cheese,” Schuman says. “We have also seen consumers dabbling with imported Manchegos and Gruyeres that are present in our Cello Cheese flights. This provides them the option to experiment with a smaller sample size and allows them the ability to experiment with different flavors as well.”

FrieslandCampina, which specializes in cheeses from the Netherlands as well as other countries, notes that its Kroon and Gayo Azul Red Wax Gouda, Rembrandt Aged Gouda from A Dutch Masterpiece, and Parrano continue to be consumer favorites. Also popular are its imported United Kingdom Cheddars from Wyke Farms and Organic Kingdom.

“Consumers are constantly seeking exciting new cheeses as the entertainment factor has changed but not disappeared,” says Debbie Seife, marketing director, FrieslandCampina. “A cheese board is always great to gather around. Kroon and Gayo Azul Red Wax Gouda are well loved and approachable due to the mild and creamy texture. Rembrandt Aged Gouda is also very popular due to the sharper flavors. And the award-winning UK Cheddars from Wyke Farms are all mature cheeses.”

Schnyder says this year has produced some unexpected demand, such as for Emmi Fondue and Raclette —warm, melted cheeses which typically don’t sell much during the summer.

“We usually sell so little, but now in summer 2020, we can’t keep it in,” Schnyder says. “People are indulging at home and may have to find new types of food. We are seeing double, even triple increases in fondue.”

As with domestic cheese and other food sectors, the global COVID-19 pandemic has impacted certain supply chains and markets for imported cheese, especially in the foodservice sector.

“The biggest challenge we have seen was from the foodservice sector essentially shutting down,” Schnyder says. “Retail got a tremendous boost with people doing more cooking and staying at home.”

Starting in April and May, there also has been a shift demand for cheese formats, Schnyder notes. Where normally cheese importers might sell a wheel or a quarter wheel to retailers with cheesemongers behind the counter, demand shifted to exact-weight, scannable cuts as stores were experiencing labor shortages and their cheesemongers were needed elsewhere.

• Cheese tariffs

Since October 2019, the United States has imposed additional 25% tariffs on a number of cheeses from the European Union (EU), including Parmigiano Reggiano, as part of a dispute over subsidies given to European aircraft. Despite requests from the CIAA and others to remove cheese and other food items, this week the Office of the U.S. Trade Representative announced only slight revisions that included removing Greek Feta from the list of items subject to tariffs (see related story on page 15 in this week’s issue).

Schnyder says while it’s good news that none of the cheese tariffs increased, the continued 25% tariffs on the cheeses that remain on the list could pose significant challenges to importers that carry these cheeses.

“I think most importers have managed and may have gotten something in support from their business partners, though some may not have and are sitting on that 25% all on their own,” he says. “It could impact their bottom line, and they may have reduced marketing because of it.”

Schnyder adds that many imported cheeses already were subject to tariffs that remain on top of the 25% aircraft tariffs.

“Parmigiano Reggiano had 15% already, and as we’re aware, Parmigiano and other EU cheeses are not inexpensive. If you were paying 15% already, you’re now paying a total of 40%. How is that not going to have an impact on your financials? Now adding the pandemic to it, they might be financially even more challenged with foodservice being down.”

Overall, however, demand remains strong and cheese importers have done well adjusting. Despite the challenges of tariffs and COVID-19, Schnyder says the industry has not yet seen a dramatic change in import volumes year-over-year. Increased retail sales have compensated for a large portion of those lost in foodservice, and some importers have been able to plan and buy in advance.

“The tariffs have been very disruptive. We have exercised extra planning and cleared as much cheese as we could before the tariffs set in,” Schuman says. “COVID has been especially disruptive to our supply chains. Demand is high and so absorbing costs to meet demand has been a challenge. We remain dedicated to our commitments and the execution of them.”

For the future, Schuman says he sees continued demand for imported cheese.

“We think that consumers that have maybe gone outside of their comfort zone and tried an imported cheese will keep coming back for more,” he says. “The lasting effect of these positive relationships created at the grocery store and cultivated at home are here to stay!”